Date: 2023-04-17Category: Not ApplicableState: Union GovernmentCountry: Europe
Decision (EU) 2023/817 of the European Central Bank of 5 April 2023 amending Decision (EU) 2019/1743 on the remuneration of holdings of excess reserves and of certain deposits (ECB/2019/31) (ECB/2023/9)
Executive Summary:
The European Central Bank (ECB) has amended Decision EU 2019/1743 regarding the remuneration of excess reserves and certain deposits. Effective May 1, 2023, the remuneration rate will be set at the euro short-term rate (STR) minus 20 basis points. This decision aligns with the remuneration ceiling for government deposits held with national central banks.
Key Points / Main Content:
Remuneration Rate Adjustment:
* From May 1, 2023, holdings in specific accounts maintained with the ECB will be remunerated at the euro short-term rate (STR) minus 20 basis points.
* This rate applies to accounts under Decisions ECB/2003/14, ECB/2010/4, ECB/2010/17, ECB/2010/31, and Council Regulation (EU) 2020/672, as well as other deposit accounts for the European Stability Mechanism and the European Financial Stability Facility.
* Deposits held in advance of payment dates, as per legal or contractual rules, will be remunerated at zero percent or the euro short-term rate (STR), whichever is higher, during this advance period.
Dedicated Account for EU Financing Programmes:
* The rate specified above also applies to a dedicated account for NextGenerationEU (NGEU), the Instrument for providing support to Ukraine for 2023 macro-financial assistance, and other EU financing programmes agreed upon by the ECB and the Commission.
* However, an aggregate amount of deposits in that dedicated account, not exceeding EUR 20 billion, shall be remunerated at zero per cent or the euro shortterm rate STR minus 20 basis points, whichever is higher.
Entry into Force:
* The decision came into force on the fifth day following its publication in the Official Journal of the European Union.
* The decision is applicable from May 1, 2023.
Impact Analysis:
ECB Account Holders:
*Impact:* Entities holding accounts with the ECB as specified in the amended decision will experience a change in the remuneration rate applied to their holdings.
*Action Required:* These entities should adjust their financial planning and forecasts to reflect the new remuneration rate of the euro short-term rate (STR) minus 20 basis points, effective May 1, 2023.
European Stability Mechanism and European Financial Stability Facility:
*Impact:* The remuneration of their deposit accounts held with the ECB will be affected by the adjusted rate.
*Action Required:* Review and adjust financial strategies and models based on the new remuneration rate.
European Commission (Regarding NGEU and Support to Ukraine):
*Impact:* The remuneration of the dedicated account used for NextGenerationEU (NGEU) and the Instrument for providing support to Ukraine for 2023 macro-financial assistance will be subject to the new rules, with a capped amount receiving potentially higher remuneration.
*Action Required:* Monitor the balances in the dedicated account to optimize remuneration within the EUR 20 billion threshold.
National Central Banks of Member States whose currency is the euro:
*Impact:* The decision aligns with the remuneration ceiling applicable to government deposits held with national central banks
*Action Required:* No action specified.
Key Entities Referenced
European Central Bank: The central bank of the European Union countries that have adopted the euro.
Treaty on the Functioning of the European Union: A treaty that forms the constitutional basis of the European Union.
European System of Central Banks: The central banking system of the European Union.
Governing Council: The main decision-making body of the European Central Bank.
Decision EU 2019/1743: A decision of the European Central Bank on the remuneration of holdings of excess reserves and of certain deposits.
euro short-term rate (STR): The euro short-term rate is a money market reference rate which reflects the wholesale euro unsecured overnight borrowing costs of banks located in the euro area.
NextGenerationEU (NGEU): A temporary instrument designed to boost the recovery of the European Union after the COVID-19 pandemic.
Frankfurt am Main, Hesse: City in Germany where the European Central Bank is located.
L 102/56 EN Official Journal of the European Union 17.4.2023
DECISION (EU) 2023/817 OF THE EUROPEAN CENTRAL BANK
of 5 April 2023
amending Decision (EU) 2019/1743 on the remuneration of holdings of excess reserves and of
certain deposits (ECB/2019/31) (ECB/2023/9)
THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
Having regard to the Treaty on the Functioning of the European Union, and in particular the first indent of Article 127(2)
thereof,
Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular
Articles 17 and 19 thereof,
Whereas:
(1) On 8 September 2022, the Governing Council decided to adjust temporarily the remuneration of deposits held with
the European Central Bank (ECB) applied in accordance with Article 2 of Decision (EU) 2019/1743 of the European
Central Bank (ECB/2019/31)(1) and Article 5 of Decision ECB/2010/4 of the European Central Bank(2). Decision
(EU) 2022/1521 of the European Central Bank (ECB/2022/30)(3) implemented this temporary framework by
setting the remuneration of such deposits at the deposit facility rate or the euro short-term rate (€STR), whichever is
lower. Decision (EU) 2022/1521 (ECB/2022/30) will not be in force after 30 April 2023.
(2) On 6 February 2023, the Governing Council decided that from 1 May 2023the remuneration of such deposits will
be set at the euro short-term rate (€STR) minus 20 basis points. This remuneration rate is aligned with the
remuneration ceiling applicable to government deposits held with national central banks of Member States whose
currency is the euro, as specified in Guideline (EU) 2019/671 of the European Central Bank (ECB/2019/7)(4), which
will also be set at the euro short-term rate (€STR) minus 20 basis points from 1 May 2023.
(3) Therefore, Decision (EU) 2019/1743 (ECB/2019/31) should be amended accordingly,
HAS ADOPTED THIS DECISION:
Article 1
Amendments
Article 2 of Decision (EU) 2019/1743 (ECB/2019/31) is amended as follows:
(1) paragraph 1 is replaced by the following:
‘1. The holdings in the following accounts maintained with the ECB shall be remunerated at the euro short-term rate
(€STR) minus 20 basis points:
(a) accounts maintained in accordance with Decision ECB/2003/14 of the European Central Bank (*),
Decision ECB/2010/4 of the European Central Bank (**), Decision ECB/2010/17 of the European Central
Bank (***), Decision ECB/2010/31 of the European Central Bank (****), and Council Regulation
(EU) 2020/672 (*****);
(b) other deposit accounts for the European Stability Mechanism and for the European Financial Stability Facility not
covered under point (a).
(1) Decision (EU) 2019/1743 of the European Central Bank of 15 October 2019 on the remuneration of holdings of excess reserves and
of certain deposits (ECB/2019/31) (OJ L 267, 21.10.2019, p. 12).
(2) Decision ECB/2010/4 of the European Bank of 10 May 2010 concerning the management of pooled bilateral loans for the benefit of
the Hellenic Republic and amending Decision ECB/2007/7 (OJ L 119, 13.5.2010, p. 24).
(3) Decision (EU) 2022/1521 of the European Central Bank of 12 September 2022 on temporary adjustments to the remuneration of
certain non-monetary policy deposits held with national central banks and the European Central Bank (ECB/2022/30) (OJ L 236 I,
13.9.2022, p. 1).
(4) Guideline (EU) 2019/671 of the European Central Bank of 9 April 2019 on domestic asset and liability management operations by the
national central banks (ECB/2019/7) (OJ L 113, 29.4.2019, p. 11).17.4.2023 EN Official Journal of the European Union L 102/57
However, when deposits need to be held in the relevant accounts in advance of the date on which a payment must be
made in accordance with the legal or contractual rules applicable to the relevant facility, such deposits shall be
remunerated during this advance period at zero per cent or the euro short-term rate (€STR), whichever is higher.
_____________
(*) Decision ECB/2003/14 of the European Central Bank of 7 November 2003 concerning the administration of
the borrowing-and-lending operations concluded by the European Community under the medium-term
financial assistance facility (OJ L 297, 15.11.2003, p. 35).
(**) Decision ECB/2010/4 of the European Central Bank of 10 May 2010 concerning the management of pooled
bilateral loans for the benefit of the Hellenic Republic and amending Decision ECB/2007/7 (OJ L 119,
13.5.2010, p. 24).
(***) Decision ECB/2010/17 of the European Central Bank of 14 October 2010 concerning the administration of
the borrowing and lending operations concluded by the Union under the European financial stabilisation
mechanism (OJ L 275, 20.10.2010, p. 10).
(****) Decision ECB/2010/31 of the European Central Bank of 20 December 2010 concerning the opening of
accounts for the processing of payments in connection with EFSF loans to Member States whose currency is
the euro (OJ L 10, 14.1.2011, p. 7).
(*****) Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of a European instrument for
temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19
outbreak (OJ L 159, 20.5.2020, p. 1).’;
(2) paragraph 2 is replaced by the following:
‘2. The rate specified in paragraph 1 shall also apply to the dedicated account maintained with the ECB in
accordance with Article 13(2) of Commission Implementing Decision of 14 April 2021 establishing the necessary
arrangements for the administration of the borrowing operations under Council Decision (EU, Euratom) 2020/2053
and for the lending operations related to loans granted in accordance with Article 15 of Regulation (EU) 2021/241 of
the European Parliament and of the Council (*) and used for the purposes of prudential cash holdings in relation to:
(a) NextGenerationEU (“NGEU”);
(b) the Instrument for providing support to Ukraine for 2023 (macro-financial assistance+) (**);
(c) any other European Union financing programme which the ECB and the Commission may agree to include.
However, an aggregate amount of deposits held in that dedicated account not exceeding EUR 20 billion shall be
remunerated at zero per cent or the euro short-term rate (€STR) minus 20 basis points, whichever is higher.
_____________
(*) C(2021)2502 final.
(**) Regulation (EU) 2022/2463 of the European Parliament and of the Council of 14 December 2022 establishing an
Instrument for providing support to Ukraine for 2023 (macro-financial assistance+) (OJ L 322, 16.12.2022,
p. 1).’.
Article 2
Entry into force
1. This Decision shall enter into force on the fifth day following that of its publication in the Official Journal of the
European Union.
2. It shall apply from 1 May 2023.L 102/58 EN Official Journal of the European Union 17.4.2023
Done at Frankfurt am Main, 5 April 2023.
The President of the ECB
Christine LAGARDE